- Analytics
- News and Tools
- Market News
- USD/CAD to move downward to 1.20 in 2022 – NBF
USD/CAD to move downward to 1.20 in 2022 – NBF
After a strong start to the quarter, the Canadian dollar is down 1% against the US dollar in the fourth quarter. Economists at the National Bank of Canada view the loonie as fundamentally undervalued and see scope for a rally over the coming months. They maintain their forecast calling for a USD/CAD rate of 1.20 in 2022.
CAD should do better in the lead up to BoC tightening
“The loonie looks to be undervalud by 10 cents. So, assuming that two-year interest rates differentials remain near current levels, we calculate that the current value of USD/CAD reflects WTI prices of only $42. That seems extreme unless of course global growth prospects deteriote markedly in the coming weeks due to the pandemic.”
“We see little reason to change our central bank’s mandate and recommend implementing the first of multiple rates hikes no latter than next March. On average, the loonie has been better bid in the lead-up to and in the early stages of BoC hiking cycles.”
“We remain comfortable with our current forecast calling for a USD/CAD rate of 1.20 in 2022.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
